$42T custodian State Street becomes latest to offer crypto-services to private clients
Bitcoin, Ethereum, and a majority of the cryptocurrency market registered a decent surge in the first half of the year. In fact, BTC and ETH weren’t the only crypto-assets to hit their ATH during the period. Ergo, it is only understandable that many institutions, including banks, have started to incorporate these digital assets.
State Street takes the next step
State Street Corporation, one of the largest bank holding companies in the U.S, is the latest to dip its toe in the market. According to reports, the second-oldest continuously operating U.S. bank has teamed up with Lukka, a leading enterprise crypto-asset data and software enterprise.
It will support its private fund clients with a range of functions. This will include – Collection, standardization, reconciliation, processing, and reporting related to crypto, other digital assets.
With more than $42 trillion in assets in custody, this development will make it one of the largest custodians in the world.
State Street to offer crypto reporting, reconciliation and processing services to its private-fund clients, another sign of Wall Street's embrace of digital assets https://t.co/aSyYKrSQYg
— Bloomberg Crypto (@crypto) July 29, 2021
According to State Street’s Digital division leader Nadine Chakar,
“The growth in popularity of digital assets is showing no signs of a slowdown. State Street Digital is committed to continuing to build out the necessary infrastructure to further develop our digital assets servicing models to help meet our clients’ growing demands.”
“Our work with Lukka will leverage their software and data in order to help expand our digital and crypto asset fund administration capabilities to alternative managers. It is just another advancement in our digital solution set and marks a very exciting development.”
Robert Materazzi, CEO of Lukka, highlighted a similar optimism towards the same as well.
On 10 June, State Street also launched a dedicated digital finance division to cater to cryptocurrencies, blockchain, CBDCs, and tokenization. State Street is also known for its digital currency collaboration with Gemini.
“Bitcoin is coming to hundreds of banks!”
Before that, BNY Mellon, one of the world’s largest custodian banks with some $41 trillion in assets, also rolled out a similar digital custody option.
.@BNYMellon a NYS-chartered banking institution is authorized to custody digital assets without the need to obtain a #NYDFS Bitlicense with the approval of the Superintendent. (1/2) https://t.co/B0lcGUMORL
— Linda Lacewell (@LindaLacewell) February 11, 2021
State Street won’t be the only entity to do so though. According to Yan Zhao, President of NYDIG, “Bitcoin is coming to hundreds of U.S banks this year.”